News Investigators/ Shareholders’ associations have kicked against the remittance of unclaimed dividends into the Unclaimed Funds Trust Fund (UFTF), managed in conjunction with the Debt Management Office (DMO).
The associations, while speaking with the News Agency of Nigeria (NAN) in separate interviews on Sunday, described the directive as an encroachment on investors’ funds and a threat to public confidence in the capital market.
The shareholders said unclaimed dividends remained the property of investors and should not be made available to the government for any purpose.
Their position followed the requirement under the Finance Act that capital market registrars transfer dividends that have remained unclaimed for six years or more into the UFTF.
NAN reports that unclaimed dividends of listed companies in Nigeria stood at more than N21.5 billion for the 2025 financial year, with major companies, including Nestlé Nigeria Plc and Dangote Cement Plc, accounting for significant portions of the outstanding funds.
The President of the New Dimension Shareholders Association of Nigeria, Mr Patrick Ajudua, said the government had no business taking control of unclaimed dividends belonging to shareholders.
“I have been one of the front-runners for unclaimed dividends whenever we have a public hearing on it. My stand has not changed and will never change.
“My stand is that unclaimed dividend is the prerogative of the shareholders. Government has no business tampering with unclaimed dividends,” he said.
Ajudua said shareholders had consistently opposed the inclusion of unclaimed dividends in a fund alongside unclaimed government money, adding that the two funds were fundamentally different.
He said the policy could undermine investors’ confidence because shareholders would become uncertain about the safety and availability of their dividends.
Ajudua urged the authorities to allow unclaimed dividends to remain with the companies concerned.
He said such funds could be deployed for business expansion while the principal remained available for eventual payment to the rightful shareholders.
“One is to ensure that those monies remain in the company. The company can use them for investment and trading and plough back the returns, which will be redistributed to the shareholders,” he said.
Similarly, the Chairman of the Integrated Shareholders Association of Nigeria, Mr Owolabi Peters, described the policy as unacceptable.
Peters said shareholders would continue to resist any attempt to take control of their unclaimed dividends.
“The government is doing what is bad. We have been on this situation for a long time. It is not acceptable at all,” Peters said.
Also speaking, the Chairman of the Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, insisted that unclaimed dividends belonged to investors and should not be treated as government revenue.
Okezie said the government had no justification for taking control of dividends declared by companies but not immediately claimed by their shareholders.
He said, “The Debt Management Office has no business managing or claiming dividends, people’s money.
“That money does not in any way belong to the government. Government did not fund any Nigerian to invest in the capital market.
“The DMO is the money management office of the Federal Government, not an office for managing unclaimed people’s money.”
Okezie said unclaimed dividends should remain in a dedicated Unclaimed Dividend Trust Fund under proper regulatory supervision, rather than being transferred to the DMO for government use.
According to him, the Securities and Exchange Commission (SEC) should monitor the fund to ensure that the money remains available to rightful beneficiaries whenever they come forward to claim it.
Okezie also faulted any move to use unclaimed dividends to finance government programmes, including student loans, describing such a development as inappropriate.
He said the government should provide funding for its programmes through the budget and other legitimate revenue sources rather than rely on investors’ funds.
He attributed part of the accumulation of unclaimed dividends to administrative challenges, including changes of addresses, migration and the death of shareholders, which could make it difficult for beneficiaries or their estates to access their entitlements.
He, however, said the introduction of electronic dividend payment had significantly reduced some of the challenges associated with the former dividend warrant system.
According to him, shareholders should ensure that their bank and personal details are updated with registrars to enable dividends to be paid directly into their accounts.
He urged investors with outstanding dividends to approach their registrars or banks to update their records and provide the necessary proof of ownership and identification.
Okezie also called for more public education on the procedures for claiming unclaimed dividends, urging registrars and market regulators to make the process accessible to investors across the country.
He suggested that registrars should establish more accessible offices and outreach programmes to enable investors outside Lagos and other major commercial centres to resolve issues relating to their dividends.
He reiterated that the priority should be to develop efficient mechanisms for tracing shareholders and paying their dividends rather than transferring the funds to government-controlled structures.
Okezie said such an approach would strengthen investors’ confidence and encourage greater participation in the Nigerian capital market.
NAN checks reveal how to check and claim unclaimed dividends.
Available records show that investors seeking to check or recover unclaimed dividends can search the relevant portals of the SEC or Central Securities Clearing System to confirm their names and outstanding balances.
They should also identify the registrar responsible for the company in which they hold shares and obtain the necessary e-dividend mandate form.
The completed form, together with the required identification and Bank Verification Number, can then be submitted through the registrar or bank to enable the payment of outstanding dividends and ensure that future dividends are paid directly into the investor’s account.
Meanwhile, Africa Prudential Plc earlier in the year unveiled Sabivest, a digital investment and wealth management platform designed to simplify access to investment opportunities and portfolio management for Nigerians.
The Chairperson of Africa Prudential, Christabel Onyejekwe, said the platform’s dividend management feature enabled investors to track dividends, receive notifications, access historical dividend records and obtain support in recovering unpaid or unclaimed dividends.
“As part of its dividend management offering, Sabivest provides dividend tracking, notifications, historical dividend records and dividend recovery support to help investors efficiently manage unpaid or unclaimed dividends,” she said.
Mrs Onyejekwe said the platform provided individuals and institutions with a single interface through which they could access, monitor and grow diversified financial assets.
She said Sabivest also offered portfolio aggregation and tracking features, including consolidated portfolio views, real-time performance monitoring, asset allocation breakdowns and e-dividend management.
According to her, the platform was developed to provide individuals and institutions with a unified digital ecosystem for managing their investments and financial assets.
NAN